Set off of losses
This query is : Resolved
21 August 2011
Mr X had discontiued business in PY09-10.
In that year he incurred a loss of Rs 3lacs which could not be set off against any income. Along with this there is c/f of loss of PY 06-07 of Rs 35000.
In PY 10-11 he recovered bad debts of Rs 40000.
My query is
1) Can he use recovery of bad debts for set off of loss pertaining to PY 09-10.
OR he can only used for set off of loss pertaining to year of discontiued business and c/f of loss can be set off againsr any other business profit.
In that year he incurred a loss of Rs 3lacs which could not be set off against any income. Along with this there is c/f of loss of PY 06-07 of Rs 35000.
In PY 10-11 he recovered bad debts of Rs 40000.
My query is
1) Can he use recovery of bad debts for set off of loss pertaining to PY 09-10.
OR he can only used for set off of loss pertaining to year of discontiued business and c/f of loss can be set off againsr any other business profit.
21 August 2011
First of all bifurcate the losses in two parts...that is unabsorbed depreciation and the other as losses....and now see the situation....
22 August 2011
In my view , it is compulsory and recommended that the loss of AY 2007-08
should be first set off.
.
It is not so that the recovery belongs to a particular year can be set off against the loss of same year.
.
The loss can be set off against any other business income within the stipulated time limit of 8 AY.
.
I also agree with the expert's advise regarding bifurcation into Dep Loss and Bus Loss.
should be first set off.
.
It is not so that the recovery belongs to a particular year can be set off against the loss of same year.
.
The loss can be set off against any other business income within the stipulated time limit of 8 AY.
.
I also agree with the expert's advise regarding bifurcation into Dep Loss and Bus Loss.
22 August 2011
I agree with the experts
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
